Why Google is tech's darling—not Apple

Apple found legs last week, but it's Google that really deserves the applause. Google has largely held its own during the recent market turmoil — and that deserves attention.

Source: Google

Investors "heart" Google right now. Here, Google's Valentine doodle from 2011, a play on Robert Indiana's LOVE sculpture.

Rightfully so, Google has become the darling of tech investors of all types, from institutional investors and fund managers all the way down to mom and pop. In fact, my baby boy was given a Google cap by his uncle, and an older lady who saw him commented that he was "getting started early," and that Google was a great place to invest.

The recovery that began last week can have follow through but the focus of the Street may not sway much from Google. Of course, other tech stocks can rally and we are expecting Apple to climb further if longer-term support holds, but Google isn't likely to falter unless something changes materially at the company.

Here's what's attractive about Google: It's well diversified, its business model is open source in many ways and it isn't directly subject to the whims of fickle consumers like Apple is because what they provide comes in all sizes, shapes, and forms — not just in a few gadgets. Apple ebbs and flows on the demand for iPhones, but Google is in much more than just the phone business.

Take a look at institutional ownership of Google: It increaSEd aggressively in 2013 to about 75 percent from 65 percent. And, while 2014 data aren't yet available, the stock price tells us that those institutional investors are likely holding firm. They are heavily invested, and at least for now they do not seem as if they are going anywhere.

Interestingly, Google has not tested longer-term resistance yet, and it is in the middle of a channel. As they say, you should not trade stocks that are in the middle of their channels, but if you bought it, you certainly can hold with risk controls in place.

When Google tested $1,123 recently, that was a buy signal, and anyone holding from there should target $1,231. So long as the market cooperates, which it is likely to do, Google should be the recipient of additional inflows.